Boeing 2012 Annual Report Download - page 52

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40
billion of unused borrowing on revolving credit line agreements. We anticipate that these credit lines will
primarily serve as backup liquidity to support our general corporate borrowing needs.
Financing commitments totaled $18.1 billion and $15.9 billion as of December 31, 2012 and 2011. We
anticipate that we will not be required to fund a significant portion of our financing commitments as we
continue to work with third party financiers to provide alternative financing to customers. Historically, we
have not been required to fund significant amounts of outstanding commitments. However, there can be
no assurances that we will not be required to fund greater amounts than historically required.
In the event we require additional funding to support strategic business opportunities, our commercial
aircraft financing commitments, unfavorable resolution of litigation or other loss contingencies, or other
business requirements, we expect to meet increased funding requirements by issuing commercial paper
or term debt. We believe our ability to access external capital resources should be sufficient to satisfy
existing short-term and long-term commitments and plans, and also to provide adequate financial flexibility
to take advantage of potential strategic business opportunities should they arise within the next year.
However, there can be no assurance of the cost or availability of future borrowings, if any, under our
commercial paper program, in the debt markets or our credit facilities.
At December 31, 2012 and 2011, our pension plans were $19.7 billion and $16.6 billion underfunded as
measured under GAAP. On an ERISA basis our plans are more than 100% funded at December 31, 2012
with minimal required contributions in 2013. We expect to make discretionary contributions to our plans
of approximately $1.5 billion in 2013. We may be required to make higher contributions to our pension
plans in future years.
As of December 31, 2012, we were in compliance with the covenants for our debt and credit facilities. The
most restrictive covenants include a limitation on mortgage debt and sale and leaseback transactions as
a percentage of consolidated net tangible assets (as defined in the credit agreements), and a limitation
on consolidated debt as a percentage of total capital (as defined). When considering debt covenants, we
continue to have substantial borrowing capacity.
Contractual Obligations
The following table summarizes our known obligations to make future payments pursuant to certain
contracts as of December 31, 2012, and the estimated timing thereof.
(Dollars in millions) Total
Less
than 1
year
1-3
years
3-5
years
After 5
years
Long-term debt (including current portion) $10,251 $1,340 $2,147 $1,095 $5,669
Interest on debt(1) 6,177 510 864 749 4,054
Pension and other postretirement cash
requirements 25,558 579 1,244 7,025 16,710
Capital lease obligations 184 102 78 4
Operating lease obligations 1,405 218 334 209 644
Purchase obligations not recorded on the
Consolidated Statements of Financial Position 118,002 44,472 41,838 18,956 12,736
Purchase obligations recorded on the Consolidated
Statements of Financial Position 15,981 14,664 1,307 1 9
Total contractual obligations $177,558 $61,885 $47,812 $28,039 $39,822
(1) Includes interest on variable rate debt calculated based on interest rates at December 31, 2012.
Variable rate debt was less than 1% of our total debt at December 31, 2012.